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Capital Expenditures for Real Estate: An Investor's Guide

Proper planning and budgeting for capital expenditures will save you when major repairs or improvements are needed to your investment property. Find out how to be prepared before it's too late.


[Updated: Feb 04, 2021 ] Mar 12, 2020 by Kevin Vandenboss

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Project Capital Expenditure Repair
Buying a new furnace X  
Replacing parts of a furnace   X
Upgrading the electrical panel X  
Replacing light fixtures   X
Building a new deck X  
Replacing handrails   X
Installing a sprinkler system X  
Replacing smoke alarms   X
Capital Expense Replacement Cost Lifespan (years) Current Age Remaining Life Cost per Year Cost per Month Annual Budget Monthly Budget
Roof $5,000 25 10 15 $200 $16.67 $333 $27.78
Water Heater $600 10 5 5 $60 $5.00 $120 $10.00
Appliances $1,000 10 10 $100 $8.33 $100 $8.33
Driveway/Parking Lot $5,000 50 15 35 $100 $8.33 $143 $11.90
HVAC $3,000 20 10 10 $150 $12.50 $300 $25.00
Flooring $2,000 6 2 4 $333 $27.78 $500 $41.67
Plumbing $3,000 30 15 15 $100 $8.33 $200 $16.67
Windows $5,000 50 15 35 $100 $8.33 $143 $11.90
Cabinets/Counters $3,000 20 5 15 $150 $12.50 $200 $16.67
Structure (foundation, framing) $10,000 50 30 20 $200 $16.67 $500 $41.67
Components (garage door, etc.) $1,000 10 2 8 $100 $8.33 $125 $10.42
TOTAL $38,600       $1,593 $132.77 $2,664 $222.01

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